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Monday, Jan 27, 2025

U.S. Suspends Foreign Aid for Evaluation After Executive Order

Aid programs have been halted while the Trump administration assesses their alignment with foreign policy objectives, with few exceptions for military financing.
Following an executive order from President Donald Trump for a review of aid allocations to align with his foreign policy goals, the United States has broadly suspended foreign assistance programs.

A cable obtained by Reuters reveals that the State Department issued an immediate 'stop-work' order on all current foreign assistance and put new commitments on hold, pending a review by Secretary of State Marco Rubio.

The cable noted that waivers have been granted for military financing to Israel and Egypt, while other programs are under review.

In the fiscal year 2023, the U.S. distributed seventy-two billion dollars in foreign aid, ranking it as the world's largest donor.

This suspension impacts various humanitarian and development initiatives, including health services, education, and support for civil society groups.

Programs paused include emergency maternal care and childhood vaccination projects in Ukraine.

However, emergency food assistance has been given a waiver due to ongoing crises such as hunger in Sudan and aid efforts in Gaza following a ceasefire.

Senior U.S. officials stated that decisions on whether to continue, modify, or end current programs will be made within the next eighty-five days.

Rubio will evaluate the allocations individually and may approve additional waivers during this time.

Critics have raised concerns about the potential humanitarian impact of the freeze.

Former U.S. Agency for International Development officials have warned that stopping essential services like HIV/AIDS treatment, nutrition programs, and refugee assistance could have severe consequences in vulnerable areas.

The freeze also includes administrative expenses related to foreign military financing, which offers significant support to countries such as Israel, Egypt, Ukraine, and Jordan.

Israel receives about three point three billion dollars annually in military aid, while Egypt receives one point three billion dollars.

The directive has faced criticism from aid organizations and former officials, who argue that the suspension risks undermining U.S. influence and allowing competitors to fill the gap.

While the administration defends the review as a crucial step for accountability, the immediate impact on global aid programs is considerable.
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